Definition of "Commitment fee"

Dawna Stone real estate agent

Written by

Dawna Stoneelite badge icon

The Property Shoppe of Central Florida, Inc.

Charge by the lender to keep credit available to the potential borrower. Once the loan is made, interest is charged on the amount borrowed. Real estate businesses often need money available for land development and building construction. Typically, the bank will charge a commitment fee on those funds.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Formal statement by an auditor, after through examination and consideration, as to whether a real estate company's financial statements fairly present financial position and operating ...

Vendee refers to a person to whom something is sold. The meaning of vendee is a buyer of goods and services. A more common term for vendee is a purchaser. While a vendor is a seller, the ...

A public officer given the right to authenticate a document, accept a person's oath, administer depositions, and to conduct other activities in commercial business. An official seal is used ...

Roof having less than a 10 degree slant. ...

Provision in a mortgage that requires the final payment to be substantially more than all other payments. ...

Also called earnest money. Money deposited with an individual for security for the performance of some contract. This is intended to show his/her willingness to follow through with the ...

Enumeration of the consideration given by each party to a contract which in some cases must be in written form to be enforceable. For example, the statute of frauds requires that all ...

(1) Giving up an ownership claim to property. (2) Renunciation of a claim to real property. ...

Professional certification granted by the Institute of Real Estate Management, an affiliate of the National Association of Realtors. ...

Popular Real Estate Questions